How much do SR&ED consultants charge?

It depends on the fee model. Most charge either a percentage of the tax credit they claim for you (a contingency fee), an hourly or daily rate, or a flat fee agreed up front. What you actually pay depends on the size of your claim, the number of projects, how good your records are, and whether CRA review support is included. Get every quote in writing and compare the total, not the headline.

What is an SR&ED contingency fee?

A contingency fee is a percentage of the investment tax credit (and often the provincial credit) that the consultant's work produces. You usually pay nothing up front and pay only if a credit is received. The CRA's Form T661 asks you to disclose whether your preparer was paid this way, and the fee amount, in Part 9.

Is a flat fee better than contingency for SR&ED?

Neither is right for everyone. A flat fee ties the cost to the work, so a larger refund doesn't mean a larger bill and the preparer has no financial reason to stretch the claim. Contingency can suit a cash-constrained first-time claimant who can't pay before the refund arrives. Compare the total cost and what happens if the CRA reduces the claim.

Can I file an SR&ED claim without a consultant?

Yes. No licence is needed and many companies file their own Form T661 and Schedule 31, often with their accountant handling the financial side. Doing it yourself costs staff time and carries more risk of weak project descriptions or missed costs. First-time claimants may also be selected for the CRA's First-Time Claimant Advisory Service. Our step-by-step filing guide covers the process.

Do I have to tell the CRA what I paid my SR&ED consultant?

Yes. Part 9 of Form T661 asks for each paid preparer's name and business number, the billing arrangement (such as a percentage of the credit, hourly, or a flat fee) and the fee paid or payable. If that information is missing, incomplete or inaccurate, a penalty of one thousand dollars can apply to the claim, and you and the preparer are jointly and severally liable.

Do SR&ED consultants charge extra if the CRA reviews my claim?

Some do. Review support may be included, capped, or billed separately at an hourly rate, and terms vary widely. Ask before you sign whether the fee covers preparing for and attending a CRA technical or financial review, responding to a proposal letter, and filing a notice of objection, and get the answer in the engagement letter.

SR&ED consultant fees: flat fee vs contingency, explained

SR&ED consultants charge in one of a few ways: a percentage of the tax credit they claim for you (contingency), an hourly or daily rate, a flat fee agreed up front, or a software subscription plus a success fee. The headline number matters less than the terms: what the fee is calculated on, what's included, and what happens if the CRA reduces the claim.

This is an independent guide. ClearSRED is not affiliated with the Canada Revenue Agency. We don't publish fee figures for ourselves or anyone else, because a fair comparison depends on your claim; this page explains how fees work so you can compare quotes properly.

What fee models do SR&ED consultants use?

There are five common approaches, four of them paid. Many firms offer more than one model, and some combine them, so ask exactly which applies to you.

Contingency (percentage of the refund). The consultant takes a share of the credit their work produces. You usually pay nothing up front and nothing if no credit is received. It is widely used, and Form T661 has a specific billing code for it.
Hourly or daily rate. You pay for time spent interviewing staff, writing project descriptions and preparing schedules. Common with accounting firms and specialists brought in for a review. Cost tracks effort, but the total isn't known in advance.
Flat (fixed) fee. A lump sum agreed before work starts, based on scope: number of projects, records available, and the support included. You know the cost up front, and it doesn't rise with the size of the refund.
Software subscription plus success fee. A platform helps you track and document work through the year, and you pay a recurring subscription, sometimes with a smaller percentage or fixed charge when the claim is filed or paid.
Do it yourself, with or without software. Your team writes the T661 and your accountant prepares the financial schedules. The cost is internal time and the risk of a weaker claim.

SR&ED fee models compared (as of October 2026)

	Contingency	Hourly / daily	Flat fee	Software + success fee	DIY
How the fee is set	A share of the credit claimed or received	Time spent, at an agreed rate	A lump sum agreed up front from the scope of work	Recurring subscription, plus a charge at filing or payout	Internal staff time; optional software or accountant fees
If the CRA reduces the claim	Depends on the contract: fee may fall with the credit, or be based on the amount claimed	Review work is usually billed as more hours	Fee is unchanged; check whether review support is included	Subscription is unchanged; success fee depends on terms	You handle the review yourself
Incentives	Preparer earns more as the claim grows	Preparer earns more as the work takes longer	Preparer earns the same whatever the claim size	Mixed: recurring revenue plus a link to claim size	Your own
Best for	First-time or cash-constrained claimants who can't pay before the refund	Companies needing a limited review or specific expertise	Companies that want a known cost and a claim sized to the evidence	Teams that want year-round tracking tools	Simple claims with strong records and in-house time

Sources: billing categories follow Form T661 Part 9 (percentage of the credit, hourly, daily, flat fee, other). CRA: Form T661 (2026).

What drives the cost of an SR&ED claim?

Effort, not the refund, is what makes a claim expensive to prepare. Whatever the fee model, these factors drive the work involved:

Number of projects. Each project needs its own Part 2 description, with its uncertainty, work performed and advancement, and its own evidence.
Documentation quality. Commit history, tickets, test results and time records make a claim faster to prepare and easier to defend. Reconstructing a year from memory takes much longer.
First-time claim. A first claim means setting up project definitions, time allocations and overhead method from scratch, and the CRA may select you for its First-Time Claimant Advisory Service.
Financial complexity. Subcontractors, related parties, provincial credits and government assistance all add work to the expenditure side.
CRA review support. Preparing for and attending a technical or financial review is real work. Some providers include it; others bill for it separately. See what to expect in an SR&ED review.

To size the credit itself before you talk to anyone, use our SR&ED calculator.

What hidden terms should you look for in an SR&ED contract?

Two quotes with the same headline can cost very different amounts. Read the engagement letter for these terms:

Minimum fees. A floor that applies even if the claim is small.
Fees on provincial credits too. A percentage may apply to the federal and provincial credits combined, not just the federal one.
Claimed versus received. A fee based on the amount claimed, rather than the amount the CRA actually pays, is owed in full even if the claim is cut.
Fees on refunds the CRA later reduces. Check whether you get money back if a reassessment reduces the credit after the fee has been paid.
Multi-year lock-ins. Some contracts cover several future tax years, or charge a fee if you leave early.
Review support billed extra. CRA reviews, proposal letters and objections may sit outside the base fee.
Who owns the work. Make sure you keep copies of the project descriptions and working papers if you change providers.

What does the CRA require you to disclose about your consultant's fee?

Part 9 of Form T661 asks whether anyone was paid to prepare or help prepare your claim. If so, you list each preparer's name and business number, the billing arrangement, the rate, and the fee paid, payable or expected to be paid. The billing options on the form include a fee based on a percentage of the credit, hourly, daily, and a flat fee.

If this information is missing, incomplete or inaccurate, a penalty of one thousand dollars can be assessed on each claim, and the claimant and preparer are jointly and severally liable. These rules apply to claims filed from January 1, 2014. Be wary of any preparer who suggests leaving Part 9 blank. For the rest of the form, see how to file an SR&ED claim.

Want a fee you know before work starts?

We quote a flat fee in writing after a short call. It doesn't change with the size of your refund, and CRA review support is included.

Why are SR&ED contingency fees debated?

Contingency fees have been a policy question for over a decade. Budget 2012 announced a study "to better understand the practice of businesses hiring consultants on a contingency-fee basis" and whether any action was needed, and the Department of Finance invited submissions until October 1, 2012.

The government chose disclosure over regulation. Budget 2013 announced the preparer and billing information now in Part 9, including whether contingency fees were used and the amount, along with the penalty described above. Contingency fees remain legal.

The arguments on both sides are reasonable. Critics say a fee that rises with the refund can encourage aggressive claims and takes a large share of public money meant for R&D. Supporters say contingency lets small companies claim with no upfront cost and puts the preparer's own money at risk if the claim fails.

How does a flat fee change the incentives?

A flat fee ties the cost to the work, not to the size of the refund. The preparer earns the same whether the credit is large or small, so there is no financial reason to stretch eligibility, round time allocations up, or include borderline projects. The goal becomes a claim sized to the evidence, which is also what holds up in a review.

It cuts both ways. With a flat fee you pay even if the claim turns out smaller than hoped, and you pay before the refund arrives. For a first-time claimant with tight cash flow and an uncertain claim, contingency can make sense, as long as the terms are clear about what the percentage applies to and what happens on a reassessment.

Questions to ask any SR&ED provider

Ask every provider the same questions and get the answers in writing:

Which fee model applies, and is it calculated on the amount claimed or the amount received?
Does the fee include provincial credits, and is there a minimum fee?
What exactly is included: interviews, T661, Schedule 31, provincial forms, financial schedules?
Is CRA review support included, and does that cover proposal letters and objections?
If the CRA reduces the claim after I've paid, do I get anything back?
Does the contract cover more than one tax year, and can I leave without a fee?
Who writes the project descriptions, and who reviews them before I sign?
How much of my engineers' time will you need, and when?
Will you be named in Part 9, and how will you report the billing arrangement?
Do I keep all working papers and descriptions if I change providers?

Can you file SR&ED without a consultant?

Yes. No licence is required to prepare an SR&ED claim, and the CRA does not require you to use a preparer. A DIY claim makes sense when your projects are few, your records are good, and someone on the team can write clearly about technical uncertainty. The main risks are weak project descriptions, missed eligible costs, and spending senior engineering time on paperwork. Our step-by-step T661 guide walks through the process.

Why does ClearSRED use a flat fee?

Because we think the fee should follow the work, not the refund. We quote a flat fee in writing after a short call, based on your projects and records. We draft your T661 and Schedule 31 from your own engineering records, an experienced SR&ED reviewer checks every claim, and CRA review support is included. You review, sign and file. See how it works, or how we compare with Boast.ai.